Intoduction

Liu Chuanzhi founded Lenovo on 1 November 1984 with a group of ten

engineers in Beijing with 200,000 yuan. The Chinese government
approved Lenovo's incorporation on the same day. Jiǎ Xùfú , one of the
founders of Lenovo, indicates the first meeting in preparation for starting
the company was held on 17 October of the same year. Eleven people,
the entirety of the initial staff, attended. Each of the founders was a
middle-aged member of the Institute of Computing Technology attached
to the Chinese Academy of Sciences. The 200,000 yuan used as start-
up capital was approved by Zēng Màocháo (曾茂朝). The name for the
company agreed upon at this meeting was the Chinese Academy of
Sciences Computer Technology Research Institute New Technology
Development Company.
Their first significant effort, an attempt to import televisions, failed. The
group rebuilt itself within a year by conducting quality checks on
computers for new buyers. Lenovo soon started developing a circuit
board that would allow IBM-compatible personal computers to process
Chinese characters. This product was Lenovo's first major success.
Lenovo also tried and failed to market a digital watch. Liu said, "Our
management team often differed on which commercial road to travel.
This led to big discussions, especially between the engineering chief and
myself. He felt that if the quality of the product was good, then it would
sell itself. But I knew this was not true, that marketing and other factors
were part of the eventual success of a product." The fact that its staff
had little business experience compounded Lenovo's early difficulties.
"We were mainly scientists and didn't understand the market," Liu said.
"We just learned by trial-and-error, which was very interesting—but also
very dangerous," said Liu. In 1990, Lenovo started to manufacture and
market computers using its own brand name.
In May 1988, Lenovo placed its first recruitment advertisement. The ad
was placed on the front page of the China Youth News. Such ads were
quite rare in China then. Out of the 500 respondents, 280 were selected
to take a written employment exam. 120 of these candidates were
interviewed in person. Although interviewers initially only had authority to
hire 16 people, 58 were given offers. The new staff included 18 people
with graduate degrees, 37 with undergraduate degrees, and three
students with no university-level education. Their average age was
26. Yang Yuanqing, the current CEO of Lenovo, was among that group.
Liu Chuanzhi received government permission to form a subsidiary
in Hong Kong and to move there along with five other employees.
Liu's father, already in Hong Kong, furthered his son's ambitions
 through mentoring and facilitating loans. Liu moved to Hong Kong
in 1988. To save money during this period, Liu and his co-workers
walked instead of taking public transportation. To keep up
appearances, they rented hotel rooms for meetings.

LENOVO CONTINUES TO GAIN

MOMENTUM IN FIRST QUARTER
FY 2017/18
- PC and Smart Devices business maintained industry-leading
profitability; PCSD average unit selling price up 7.8 percent year-
over-year - Data Center business introduced its most comprehensive
new product portfolio ever including new ThinkSystem and
ThinkAgile lines; revenue grew 14.2 percent quarter-toquarter, up in
both Europe and North America - Mobile business introduced
cutting-edge new phones including Z2 Force available on all major
U.S. carriers; revenue up 2.4 percent year-over-year; pre-tax income
margin improved 2.2 pts. - Revenue was US$10 billion, flat year-
over-year; up 4.5 percent quarter-to-quarter - Operating profit
improved US$110 million quarter-to-quarter; net loss was US$72
million - Basic loss-per-share of 0.66 US cents or 5.15 HK cents
HONG KONG, August 18, 2017 – Behind the strength of its 3-wave
strategy, Lenovo’s business transformation continued to gain traction
during the first quarter, delivering solid profitability in its core PC and
smart devices business, and revenue and profit improvements in
targeted growth areas, including the data center and mobile businesses
Fueled by new investments in people and products, Lenovo’s Data
Center Group (DCG) introduced the most comprehensive product
lineup in its history, with the new ThinkSystem and ThinkAgile
portfolio, and continued to build out its end-to-end sales organization.
Similarly, Lenovo’s Mobile Business Group launched significant new
products led by the Moto Z2 Force, available now on all major U.S.
carriers, and ramped up its branding efforts worldwide. “In the first
quarter this fiscal year, we had stable performance as we executed our
3-wave strategy with commitment. We maintained our industry
leading profitability in PC, built the foundation in mobile and data
center, and further invested in ‘Device + Cloud’ and ‘Infrastructure +
Cloud’ powered by Artificial Intelligence,” said Yang Yuanqing,
Lenovo Chairman and CEO. “We have made solid progress on every
front of our strategy. Particularly MBG continued to improve, and is
on track to breakeven by second half of this fiscal year. DCG gained
good momentum as well. As the two new growth engines gain speed,
we believe the sustainable results will soon follow.” For its first fiscal
quarter ended June 30, 2017, Lenovo’s quarterly revenue was US$10
billion, flat year-over-year, but an increase quarter-to-quarter of 4.5
percent. First quarter pre-tax loss was US$69 million, with a net loss
of US$72 million. Operating profit was up US$110 million quarter-to-
quarter. The Company’s gross profit for the first fiscal quarter
decreased 11 percent year-over-year to US$1.4 billion, yet remained
flat quarter-to-quarter, with gross margin at 13.6 percent. Basic loss
per share for the quarter was 0.66 US cents, or 5.15 HK cents.
Lenovo introduced its 3-wave strategy, namely balancing PCSD
growth and profit, accelerating our DCG and MBG growth engines,
and investing in non-hardware areas, to both meet today’s market
dynamics while positioning the Company for longer-term profitable
growth. Lenovo is investing in core technology and next-generation
platforms that will help customers move towards a smart internet era
where all smart devices will be connected to the cloud and powered
by Artificial Intelligence (AI). While Lenovo is focused on new
technologies with our ‘Device + Cloud strategy’, the Lenovo Capital
and Investment Group (LCIG), the Company’s provider of IoT
solutions, reached a first quarter milestone of over three million users
on its Global API platform. In addition, as Lenovo continued to
expand its ecosystem, LenovoID (a unique identification of directly
reachable users across Lenovo devices) reached 225 million users in
the first quarter. The progress Lenovo is making in its non-hardware
businesses, such as software, services, and big data, is already gaining
significant traction and winning new customers. At its third annual
Tech World event, held last month in Shanghai, Lenovo demonstrated
several new consumer and commercial products, such as SmartVest
wearable technology and daystAR glasses to help with industrial
maintenance. Lenovo also announced a US$1.2 billion investment in
AI research and development, and is pursuing smart solutions and
partnerships in the manufacturing, healthcare and transportation
sectors. Business Group Overview In our PC and Smart Devices
(PCSD) business group, which includes PCs, tablets and smart
devices, the average selling price of our PC + tablet products
improved 7.8 percent year-overyear, meaning that customers were
gravitating to Lenovo’s more innovative, higher-end products. Despite
industry-wide component shortages and subsequent cost-hike
pressures, Lenovo maintained its industry-leading profitability.
PCSD revenue was US$7 billion, with flat growth year-over-year.
However, quarter- to-quarter, PCSD revenue grew 4.8 percent. Pre-tax
income was US$291 million and pre-tax income margin fell to 4.2
percent, mainly due to the industry-wide increased component costs.
Lenovo’s PC business in the first quarter recorded share gains in Asia
Pacific, Europe and Latin America, and worldwide shipped 12.4
million units. In China, where Lenovo still enjoys almost 36 percent
market share, the Company appointed a strong new consumer-focused
leader to run its PCSD business. In North America as well, where the
PCSD business has been flat, new leadership is now in place to help
boost sales.
Lenovo’s Mobile Business Group (MBG), which includes Moto and
Lenovo-branded smartphones, saw encouraging revenue growth
outside of China to US$1.7 billion, 7.6 percent increase year-over-
year. As an example of the Company’s continuing momentum in this
business, Lenovo achieved its publically-stated goal of selling three
million Moto Z smartphones within the first 12 months.
For the second consecutive quarter MBG has continued to grow
revenue and improve profitability, with revenue up two percent year-
over-year to US$1.7 billion and a pre-tax income margin
improvement of 2.2 pts. during the same period. With 11 million
smartphones shipped in the first quarter, Lenovo grew 12.3 percent
year-overyear outside of China, driven by significant gains in both
Western Europe and Latin America, up 137 percent and 56 percent
respectively year-over-year.
Lenovo’s Data Center Group (DCG), which includes servers, storage,
software and services, continued to focus on the transformative
actions that will help drive long-term DCG competitiveness, such as
strengthening our sales teams, investing in the channel, revamping our
product lines, building our brand strategy, and adding new
partnerships.
These actions helped to stabilize the business outside of China in the
first quarter with quarterto-quarter revenue growth of 14 percent.
Particularly encouraging was the year-over-year revenue growth in
Western Europe and North America of 11 percent and eight percent
respectively, including quarter-over-quarter revenue growth of 22 and
19 percent respectively. In both geographies, new leadership, a
restructured sales organization, and new products are beginning to pay
the expected dividends, and we expect that trend to accelerate into
other geographies, including China, as we execute our DCG
transformation worldwide.
Another positive sign in DCG was a pre-tax income margin
improvement of 1.7 pts. quarter-toquarter. In addition to these
financial indicators, DCG set 42 world-record benchmarks on the new
Intel platform, more than any of our competitors and Lenovo
continued to be the world’s fastest-growing super-computing provider,
number #1 in China and under recent new leadership there, secured a
major win with Peking University.

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$43 billion global

Fortune 500 company and a leader in providing innovative consumer,
commercial, and enterprise technology.
LENOVO GROUP FINANCIAL
SUMMARY For the fiscal quarter ended
June 30, 2017 (in US$ millions, except per
share data)
  NATURE OF BUSINESS
IPO, second offerings, and bond sales
Lenovo became publicly traded after a 1994 Hong Kong
listing that raised nearly US$30 million. Prior to its IPO,
many analysts were optimistic about Lenovo. The
company was praised for its good management, strong
brand recognition, and growth potential. Analysts also
worried about Lenovo's profitability. Lenovo's IPO was
massively over-subscribed. On its first day of trading,
the company's stock price hit a high of HK$2.07 and
closed at HK$2.00. Proceeds from the offering were
used to finance sales offices in Europe, North America
and Australia, to expand and improve production and
research and development, and to increase working
capital.[9]
When Lenovo was first listed, its managers thought the
only purpose of going public was to raise capital. They
had little understanding of the rules and responsibilities
that went along with running a public company. Before
Lenovo conducted its first secondary offering in 1997,
Liu proudly announced the company's intent to mainland
newspapers only to have its stock halted for two days by
regulators to punish his statement. This occurred
several times until Liu learned that he had to choose his
words carefully in public. The first time Liu traveled to
Europe on a "roadshow" to discuss his company's stock,
he was shocked by the skeptical questions he was
subjected to and felt offended. Liu later came to
understand that he was accountable to shareholders. He
said, "Before I only had one boss, but CAS never asked
me anything. I relied on my own initiative to do things.
We began to think about issues of credibility. Legend
began to learn how to become a truly international
company."
To fund its continued growth, Lenovo issued a
secondary offering of 50 million shares on the Hong
Kong market in March 2000 and raised about US$212
million.
Mary Ma, Lenovo's chief financial officer from 1990 to
2007, was in charge of investor relations. Under her
leadership, Lenovo successfully integrated Western-
style accountability into its corporate culture. Lenovo's
emphasis on transparency earned it a reputation for the
best corporate governance among mainland Chinese
firms. All major issues regarding its board, management,
major share transfers, and mergers and acquisitions
were fairly and accurately reported. While Hong Kong-
listed firms were only required to issue financial reports
twice per year, Lenovo followed the international norm of
issuing quarterly reports. Lenovo created an audit
committee and a compensation committee with non-
management directors. The company started roadshows
twice per year to meet institutional investors. Ma
organized the first-ever investor relations conference
held in Mainland China. The conference was held in
Beijing in 2002 and televised on CCTV. Liu and Ma co-
hosted the conference and both gave speeches on
corporate governance.[9]

Former Lenovo logo, used from 2003 until 2015

In May 2015, Lenovo revealed a new logo at Lenovo
Tech World in Beijing, with the slogan "Innovation Never
Stands Still" (Chinese: 创新无止境). Lenovo's new logo,
created by Saatchi, New York, can be changed by its
advertising agencies and sales partners, within
restrictions, to fit the context. It has a lounging "e" and is
surrounded by a box that can be changed to use a
relevant scene, solid color, or photograph. Lenovo's
Chief Marketing Officer David Roman said, "When we
first started looking at it, it wasn't about just a change in
typography or the look of the logo. We asked 'If we really
are a net-driven, customer-centric company, what
should the logo look like?' We came up with the idea of
a digital logo first … designed to be used on the internet
and adaptable to context."
In early June 2015, Lenovo announced plans to sell up
to US$650 million in five-year bonds denominated in
Chinese yuan. The bonds will be sold in Hong Kong with
coupon ranging from 4.95% to 5.05%. This is only the
second sale of bonds in Lenovo's history. Financial
commentators noted that Lenovo was paying a premium
to list the bonds in yuan given relatively low costs for
borrowing in American dollars.
Tianxi[edit]
The Tianxi computer was designed to make it easy for
inexperienced Chinese consumers to use computers
and access the Internet. One of its most important
features was a button that instantly connected users to
the Internet and opened the Web browser. It was co-
branded with China Telecom and it was bundled with
one year of Internet service. The Tianxi was released in
1998. It was the result of two years of research and
development. It had a pastel-colored, shell-shaped case
and a seven-port USB hub under its screen. As of 2000,
the Tianxi was the best-selling computer in Chinese
history. It sold more than 1,000,000 units in 2000 alone.

About Lenovo
Lenovo is worldwide famous company of its innovative PCs, mobile
and internet devices. Among 500 famous companies in technological
products manufacturing Lenovo is one of the largest companies in PC
retailing and 4th ranked in smart phones section
(Russellreynolds.com, 2015). Lenovo has an older history but it came
into existence in 2004.The main focus of Lenovo is to deliver their
customers what they want in technology, appearance of any electronic
product. Lenovo is a company which works taking into consideration
their employees, as well as their customers (Lenovo.com, 2015).
Lenovo always focuses on innovation i.e. every product of Lenovo is
having some changes in comparison of other product. The value on
which Lenovo works is innovation i.e. Lenovo likes innovating their
product as per present market requirement and their customers' needs
and demand (Russellreynolds.com, 2015). Lenovo after getting great
success in Chinese electronic market decided to expand their business
in Asian, European and American electronic markets (Agtmael,
2007).Every product of Lenovo produces different revenue of
percentage which helps in company's profit income. Lenovo
performance varies in every region i.e. the profit share of Lenovo in
China is different from profit share of it's in Asia Pacific.
 Figure1: Lenovo PC share in 4 different regions
Figure 1 shows the performance of Lenovo in different regions i.e. the
Lenovo performance geography. In the above diagram EMEA stands
for Europe – Middle East Africa, AP is Asia Pacific, and AG is
America. Lenovo performance vary in all these region has their
customer choice, needs and demand depend on geographical factor.
According to the report An exciting notebook: The Lenovo T440s
[From the Screen of Stone], 2014) Lenovo in the end of financial
year( FY) 2013 have highest market share in all the four geographical
areas as Asia Pacific, Europe Middle East Africa and China. Figure 1
shows the market share of Lenovo PCs in the financial year (FY) in
2013 and 2014.

Figure 2: Revenue of Lenovo

Figure 2 shows the total revenue of Lenovo in the financial year 2012,
2013 and 2014. The revenue generated by Lenovo is calculated by
taking into consideration all the products profit share and market
share in four regions (An exciting notebook: The Lenovo T440s
[From the Screen of Stone], 2014). Figure 2 shows total revenue of
Lenovo in different market.

Figure 3: Lenovo revenue from different products

Figure 3 represents the revenue generated by Lenovo in their different
products sections. According to ((Anon, 2015)) Lenovo in fiscal year
2013-14 attained good growth in shipment of PCs and mobile devices.
The revenue generated by Lenovo all products are different from each
other. By the above diagram, it is clear that the highest revenue
generated is by Lenovo notebook and their desktops.

Lenovo Background, description of Lenovo Mission, Vision and

strategies
Lenovo is a multinational company Chinese based who manufactures
computer technology related products like PCs, tablets, smartphones,
smart TV, workstations, computer servers, different computer related
software, notebook, note PAD and etc(Russellreynolds.com, 2015).
The main products manufactured by Lenovo are electronic and
computer related software as well as hardware. Lenovo was founded
in 1984 by Liu Chuanzhi in China but after few years company
become worldwide famous for its electronic and computer products.
Recently by a survey (BIEDIGER et al., 2005) it was found that
Lenovo is the first, and the largest company in PC selling more in
than 160 countries Lenovo have their customers. The main focus of
Lenovo for their business is innovation. According to Chianasat and
Wijaya (n.d.), the electronic or computer products are developed by
them are always having something new which their customer will
appreciate and like using. The plus point which makes Lenovo
different from other same field companies is their innovation strategy,
excellence in their operational, their strong channel of working and
the brand image (BIEDIGER et al., 2005). The competitors present in
the market of Lenovo are Apple Inc., Samsung Electronics Co., Sony
Corporation, HP, Dell Inc. etc., (De Waal, 2011).Lenovo has a strong
bonding with their enterprise customers and business partners which
help in getting success to them.
Mission statement of Lenovo defines their objective and aim for
which they work. The main motive of Lenovo is to achieve the
highest rank in computer technology field. Mission statement
represents the goals of Lenovo, principle on which Lenovo works to
achieve their objective and aim (lenbrzozowski, 2012). Mission
statement of Lenovo aims to show their customers what they plan to
achieve and what they have aimed to take into consideration their
customers (Chianasta and Wijaya, n.d.). While deciding mission
statement, Lenovo always considers their customers feedback.
Vision statement of Lenovo represents their future planning to their
customers. Vision statement is based on long term planning for
achieving success. Vision statement helps their customer know how
they are working i.e. their organizational culture and strategies which
will be adopted by Lenovo to fulfill their customers demand and
needs (De Waal, 2011). Vision statement of Lenovo shows that they
have planned to develop more electronic and computer products
which people will like buying. Every product of Lenovo will be new
in technology and appearance so that people are automatically
influenced to buy their product (De Waal, 2012). Lenovo has also
decided to work according to their customers demand and needs.
Lenovo has adopted different strategies for marketing, promoting,
advertising their products. As per the market requirement all these
strategies will be planned, every market have different practice and
culture (lenbrzozowski, 2012). Lenovo always focuses on innovation
i.e. they try to make changes in their every new product in
comparison of old products and other competitors' product. Mission,
vision, and strategies are decided by every organization prior to their
working (Haberberg and Rieple, 2001). This helps in planning further
planning i.e. how to implement strategies for achieving their decided
objective and aim.
Leadership style in Lenovo
According to De Waal (2012), the leadership style followed in Lenovo
is not selfish i.e. the leaders of the company do not only focus on
company's profit but they also think about their people (employees,
customers, stakeholders etc) who are connected with Lenovo (IBM
Redbooks., 2014). As per the leadership style of Gerry Smith, while
making innovations in their products, Lenovo analyze their customers'
requirement and needs with prioritization. On the other hand, while
making changes in house i.e. in company's policies or practice they
think about their employees' welfare. There is an incident which
describes the unselfishness nature of Lenovo (lenbrzozowski, 2012)
leaders is as the company once has earned a profit which he decided
to distribute among the junior level employees which impacted the
working environment in positive nature i.e. employees felt that they
are the part of organization and on the other hand junior level
employees were motivated to perform better than their previous
performance (An exciting notebook: The Lenovo T440s [From the
Screen of Stone], 2014). As per the leadership style of Gerry Smith,
Lenovo leaders believes in achieving success by motivating everyone
to perform in a team not individually for achieving goal (IBM
Redbooks., 2014). The organization is motivating their employees by
giving different rewards or bonus and other facilities. Lenovo Leaders
also believe the leadership style of Gerry Smith, who says there needs
to create a situation or condition which influence them to work rather
than forcing them for working. The situation will help them to find a
best solution for the problem which will automatically help
organization. According to HQAsia (2015), Lenovo working style and
leadership style is different from other Chinese organization which is
the reason for success of Lenovo in such a short period. According to
Gerry Smith, leader in any organization are the people or group of
people who influence or motivate other subordinates to work
according to the principles of the organization (Russellreynolds.com,
2015). Moreover, Gerry Smith also believes that leaders also help the
organization in achieving their aim and objectives whether it is long
term objective or short term objective (Small Business - Chron.com,
2015). Leaders' good coordination with their subordinates makes
Lenovo achieves a benchmark in electronic and computer technology
field.

Figure4: Leadership challenges in Lenovo

There are different challenges which company leaders has to face
today that is described in figure 4 (Glassdoor, 2015). Challenges faced
by the different leader of Lenovo due to;

 Board composition

 Succession Planning

 Executive Recruitment

 External and internal talent benchmarking

 Evaluation and assessment of organizational culture

 Intercultural or multi culture integration program.

Every organization has to undergo the process of succession planning,

recruitment and selection of junior level, senior level and executive
level(Yin et al., 2008). While planning these programs leaders of
Lenovo has to consider their internal and external factors i.e.
organizational culture, working style, working environment,
requirement of the company in relation to technology, skills etc.
Communication strategy followed in Lenovo
The communication styles which are used in Lenovo are formal
communication and interpersonal communication. Communication is
used for interchanging the ideas, views with each other. For a proper
communication there should be a sender who speaks, a receiver which
listens to speaker and the main part is feedback which is given at the
last of communication (Wave Sicherheitstechnologie für Lenovo-
Computer, 2012). Formal communication usually happens in offices
or among professional where both speaker and listen are from the
same profession or different.
Formal communication in Lenovo– Formal communication in Lenovo
is done for exchanging official information among the profession. For
example suppose in Lenovo Manger of technical team wants to
convey his subordinates a message then the communication process
used by him will be formal (Tzeng, 2011). The flow of information is
from upward to downward i.e. from higher level managers to junior
level manager or employees or vice versa.

Figure 5: Types of formal communication done in Lenovo

The flow of information in formal communication is in controlled
manner i.e. no personal information can be exchanged. Lenovo
performs formal communication in different from like written and
verbally or oral. As explained in figure 5 the written message can be
conveyed in the form of letters, electronic mail, blog, notices,
bulletins, memos etc. The verbal, formal communication is done by
presentations, speeches, conferences etc(An exciting notebook: The
Lenovo T440s [From the Screen of Stone], 2014). The controlled flow
of information makes formal communication a hurdle free
communication (Teasley, 2010). Formal communication in Lenovo is
used to make a proper channel-based communication by which
information is exchanged with everyone.

Figure 6: Formal communication in Lenovo

Formal communication can be done in Lenovo by the help of
presentation, documentation or in any other written form. In Lenovo
formal communication is two ways upward and downward i.e. when
top level managers have to convey their message to down level
employees the message convey instructions, directives, policies and
working practices but on the other hand, when low-level employees
send any message to top level manager it is information regarding
work or organization (IBM Redbooks., 2014). Formal communication
in Lenovo is done to pass their policies and practices details to
everyone. For example, CEO of Lenovo has to transfer any
information regarding their new policies or any changes in policies
regarding their employees then the flow of information will be from
upward to downward without any breakage of information so that
every level of employees receives the same information (Stone,
2010). So this flow of information is formal communication style of
Lenovo.
Interpersonal communication in Lenovo–Interpersonal
communication is the interchanging process of information among
two or more people in Lenovo. When directly or indirectly two or
group of people is exchanging their views or thoughts it is
interpersonal communication. Interpersonal communication can
upward, downward, horizontal and peer to peer (IBM Redbooks.,
2014). For example, suppose two or group of twenty junior level
employees are exchanging their views and thoughts regarding their
work, this interchange process of information are interpersonal
communication (Jurevicius, 2015). Interpersonal communication can
be done by electronic device or social networking or face to face
verbally (Small Business - Chron.com, 2015). Interpersonal
communication helps people know each other (Sharma, 2010). When
peers have interpersonal communication among themselves that help
to build good coordination and strengthen their communication.
Interpersonal communication helps in building teamwork and
coordination among the employees of Lenovo.
Now days Lenovo organization has adopted a new technique for
advertising i.e. social media. Lenovo believes in adoption strategy i.e.
making changes and accepting the new thing properly. It is found in a
survey (Haberberg and Rieple, 2001) that people are more believing
on advertisement which is shown on social networking sites like
Facebook etc, in comparison of television or hoarding method.
Lenovo is having a separate department of social networking
advertisement whose responsibility is to update the technology and
advertisement on different social media. According to Lenovo
(HQAsia, 2015) customer beliefs regarding advertisement style has
been changed i.e. from television, hoarding method to social media
advertisement. Lenovo adopted social media promotion and
advertisement method for their new product and services so that
everyone worldwide com to know about their product easily and
completely.

Organizational culture of Lenovo

Organizational culture represents the way or style of working of
Lenovo. Organizational culture shows their customers how Lenovo
works daily and also there planning for achieving their objective and
aims (Russellreynolds.com, 2015). The main focus of Lenovo
organizational culture is based on five P's which are as mentioned
below:

 P – Plan

 P – Perform

 P – Prioritize

 P – Practice

 P – Pioneer

Every P is having their own important and responsibility in Lenovo

culture. First p stand for plan before starting any new task Lenovo
decides their target, aim for which they will work. Planning helps
Lenovo employees work step by step by which working environment
will always be motivational for other subordinates. If Lenovo
managers or senior level employees do not plan working process, then
the subordinates will be unaware of their roles and responsibilities
which can affect the profit of Lenovo (IBM Redbooks., 2014). The
second P stand for performing i.e. as per the planning every employee
will be given a set of responsibilities which will help in achieving
objective as a team. Responsibilities should be distributed to everyone
according to their skills and knowledge which have to examine by
leaders of the team. Third P stand for Prioritize which explains every
employee of Lenovo whether it is the senior level or junior level that
they should work in a team considering their organization profit or
their individual profit first. Priority list has to be discussed by leader
or manager with their subordinates before beginning their work so
that they work for Lenovo or their individual profit (Rossouw, 2005).
Fourth P explains the practice which is performed in Lenovo by their
employees. The practice or process, which group or team of Lenovo
performs to achieve the common goal to increase Lenovo profit. Last
P explains the pioneering process i.e. Lenovo welcomes the new ideas
by their employees regarding their task which they are doing
(Jurevicius, 2015). Lenovo believes in new ideas or innovation
whether it is in their products or in-house policies.
Lenovo culture defines the way of working for their customers and
employees. Lenovo culture has helped them to achieve success in
their field and win several award for their product and services (Kaul,
2012). Lenovo works for their people, and the people are their
employees and their customers. By giving their employees different
rewards for their performance they motivate them to work better and
think creatively. Lenovo creates policies and practices which help in
welfare of their employees. Lenovo always focuses on innovation
which their customers want in their computer product and services
(lenbrzozowski, 2012). Lenovo biggest strength is their innovation
which they always do as per requirement of their customers and
electronic market. Lenovo policies motivate their employees to
perform in a team and sharpen their skills, knowledge.
Operations
Lenovo's principal facilities are in Beijing, Morrisville, North
Carolina and Singapore, with research centers in Beijing,
Morrisville, Shanghai, Shenzhen, Xiamen, Chengdu, Nanjing,
and Wuhan in China, and Yamato in Kanagawa Prefecture,
Japan. Lenovo operates factories in Chengdu and Hefei in
China, Japan, and as of December 2011 has plans to start
production in Argentina. A 700-square-metre (7,500 sq ft)
flagship store opened in Beijing in February 2013.

The Lenovo R&D centre in Shenzhen, Guangdong

Lenovo's manufacturing operations are a departure from the
usual industry practice of outsourcing to contract
manufacturers. Lenovo instead focuses on vertical integration
in order to avoid excessive reliance on original equipment
manufacturers and to keep down costs. Speaking on this topic,
Yang Yuanqing said, "Selling PCs is like selling fresh fruit.
The speed of innovation is very fast, so you must know how
to keep up with the pace, control inventory, to match supply
with demand and handle very fast turnover." Lenovo benefited
from its vertical integration after flooding affected hard-drive
manufacturers in Thailand in 2011, as the company could
continue manufacturing operations by shifting production
towards products for which hard drives were still available.
Lenovo began to emphasize vertical integration after a
meeting in 2009 in which CEO Yang Yuanqing, and the head
of Lenovo's supply chain, analyzed the costs versus the
benefits of in-house manufacturing, and decided to make at
least 50% of Lenovo's manufacturing in-house. Lenovo Chief
Technology Officer George He said that vertical integration is
having an important role in product development. He stated,
"If you look at the industry trends, most innovations for" PCs,
smartphones, tablets and smart TVs are related to innovation
of key components—display, battery and storage.
Differentiation of key parts is so important. So we started
investing more...and working very closely with key parts
suppliers." Previously, lack of integration due to numerous
foreign acquisitions and an excessive number of "key
performance indicators" (KPIs) was making Lenovo's
expansion expensive and creating unacceptably slow delivery
times to end-customers. Lenovo responded by reducing the
number of KPIs from 150 to 5, offering intensive training to
managers, and working to create a global Lenovo culture.
Lenovo also doubled-down on vertical integration and
manufacturing near target markets in order to cut costs at time
when its competitors were making increased use of
outsourcing off-shoring. By 2013, Lenovo ranked 20th on
Gartner's list of top 50 supply chains, whereas in 2010 the
company was unranked.
In 2012, Lenovo partially moved production of its ThinkPad
line of computers to Japan. ThinkPads will be produced by
NEC in Yamagata Prefecture. Akaemi Watanabe, president of
Lenovo Japan, said, "As a Japanese, I am glad to see the
return to domestic production and the goal is to realize full-
scale production as this will improve our image and make the
products more acceptable to Japanese customers."
In October 2012, Lenovo announced that it would start
assembling computers in Whitsett, North Carolina. Production
of desktop and laptop computers, including the ThinkPad
Helix began in January 2013. As of July 2013, 115 workers
were employed at this facility. Lenovo has been in Whitsett
since 2008, where it also has centers for logistics, customer
service, and return processing.
In 2015, Lenovo and Hong Kong Cyberport Management
Company Limited, a government-sponsored business park for
technology firms, reached a deal to "jointly build a cloud
service and product research and development center."
Lenovo’s Asia Pacific data center will also be housed in
Cyperport.
Lenovo assembles smartphones in Chennai, India through a
contract manufacturing agreement with Flextronics. In
November 2015, Lenovo announced that it would start
manufacturing computers in Pondicherry.